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The Scottish Parliament and Scottish Parliament Infor mation C entre l ogos .
Financial Scrutiny Unit Briefing
Local Government finance: facts and figures, 1999-2014
29 May 2013
13/31
Allan Campbell
This briefing has been prepared to assist the Local Government and Regeneration Committee in its scrutiny of the Scottish Government’s spending plans. It includes key facts and figures on all aspects of local government finance, since devolution. However, it does not disaggregate figures to local authority level.
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CONTENTS
INTRODUCTION .......................................................................................................................................................... 3
LOCAL GOVERNMENT ALLOCATIONS ................................................................................................................... 3
RING-FENCING............................................................................................................................................................ 9
COUNCIL TAX INCOME AND NON-DOMESTIC RATES INCOME ......................................................................... 10
PFI/PPP/NPD REPAYMENTS ................................................................................................................................... 12
SOURCES .................................................................................................................................................................. 14
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INTRODUCTION
This briefing contains a range of facts and figures on Local Government Finance, requested by the Local Government and Regeneration Committee, to inform its forthcoming pre-Budget scrutiny work. The information contained in this briefing covers the period 1999-2014, specifically—
Total Local Government revenue allocation, and percentage of total allocation that comes from the Scottish Government;
Total Local Government Capital allocations;
Total local government budget, and percentage of overall Scottish budget.
Total amount of ring-fenced funding;
Total Council tax income;
Total Non-Domestic Rates Income; and
Total repayments for PFI/PPP/NPD projects.
There are various caveats attached to each set of data, mainly due to problems around comparability, because of changes to the responsibilities of local government and the methodologies involved in calculating the local government settlement. These are explained in detail where appropriate.
Various abbreviations are used throughout this briefing, a key is set out below.
AEF – Aggregated External Finance
DEL – Departmental Expenditure Limit
GRF – General Revenue Fund
LG – Local Government
NDRI – Non-Domestic Rates Income
NPD – Non-Profit Distributing Model
PFI – Private Finance Initiative
PPP – Public/Private Partnership
RSG – Revenue Support Grant
SG – Scottish Government
LOCAL GOVERNMENT ALLOCATIONS
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This section of the briefing charts how the local government budget has changed over time, since 1999.
Table 1 shows total Local Government revenue expenditure, and the percentage that comes from central government.
Table 1: Total Local Government revenue allocations and percentage that comes from the Scottish Government
Financial Year LG Revenue Expenditure (£m)
Central Government Revenue Funding (£m)
CG % of Total LG Revenue Expenditure(%)
1999-2000 6,451.1 5,526.5 85.7
2000-2001 6,671.9 5,643.4 84.6
2001-2002 7,053.6 6,061.9 85.9
2002-2003 7,881.2 6,734.7 85.5
2003-2004 8,599.2 7,294.3 84.8
2004-2005 9,093.0 7,683.5 84.5
2005-2006 9,780.2 8,101.5 82.8
2006-2007 9,744.2 8,327.1 85.5
2007-2008 10,249.3 8,717.7 85.1
2008-2009 11,697.8 10,209.7 87.3
2009-2010 12,380.6 10,788.9 87.1
2010-2011 12,577.8 11,141.0 88.6
2011-2012 12,696.6 10,861.6 85.5
2012-2013
10,915.7
2013-2014
9,728.5
Sources and Notes
Local Government Net Revenue Expenditure figures taken from the relevant annual Local Government Finance Statistics Publication (Scottish Government 2013d)
The Central Government Revenue Funding figures are taken from the relevant Local Government Finance Circulars and represent Total Revenue Funding (Scottish Government 2013a).
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The revenue figures are broadly comparable between 1999 and 2008 but they are not comparable with the figures post 2008 as over £1 billion of previously ring-fenced grants were added to the local government finance settlement in 2008-09.
Figure 1 shows that there has not been significant variance over time in terms of the percentage of Local Government expenditure that is funded by central government.
Figure 1: Total Local Government revenue allocations and percentage that comes from the Scottish Government
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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Table 2 below shows the total local government capital allocations from the Scottish Government. However, year on year figures are generally not comparable, as explained below.
Table 2: Local Government capital allocations from the Scottish Government
Financial Year Central Government Capital Funding (£m)
1999-2000 298.2
2000-2001 300.8
2001-2002 367.9
2002-2003 432.9
2003-2004 509.5
2004-2005 303.8
2005-2006 303.8
2006-2007 297.7
2007-2008 305.2
2008-2009 974.6
2009-2010 1,041.2
2010-2011 843.2
2011-2012 691.8
2012-2013 569.7
2013-2014 552.2
Notes and sources
The capital figures for 1999-2004 represent only the figures for Capital Consents and only Supported Borrowing for the years up to 2007-08
The figures for the period 2008-14 represent the original funding allocations and do not include any in-year adjustments.
Sources: Scottish Government (2013a)
Table 3 below shows total Local Government funding as a percentage of the total Scottish Government DEL (+NDRI money).
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Table 3: Total Local Government Funding as a percentage of SG DEL + NDRI
Financial Year Total LG Funding from SG (£m)
SG Total DEL +NDRI (£m)
LG as % of SG Total (%)
1999-2000 5,513.0 15,247.5 36.2
2000-2001 6,004.5 16,367.7 36.7
2001-2002 6,474.4 17,949.9 36.1
2002-2003 7,687.1 19,376.6 39.7
2003-2004 8,600.4 21,559.1 39.9
2004-2005 9,378.0 23,294.8 40.3
2005-2006 9,856.8 25,245.8 39.0
2006-2007 10,141.2 27,187.8 37.3
2007-2008 10,651.1 28,683.5 37.1
2008-2009 11,133.8 29,964.5 37.2
2009-2010 11,693.1 31,275.0 37.4
2010-2011 11,986.3 31,292.8 38.3
2011-2012 11,548.0 30,177.8 38.3
2012-2013 11,597.7 30,522.8 38.0
2013-2014 11,541.9 30,761.8 37.5
Notes and sources
All figures from relevant SG budget and spending review documents (Scottish Government 2013b), specifically, for LG—
1999-00 Plans - Serving Scotland's Needs; 2000-02 Plans - The Scottish Budget 2001; the 1999-2007 figures are outturn taken from the Spending Review 2007
The 2007-08 figure is a constructed figure agreed with COSLA following the signing of the Concordat.
The 2008-12 figures represent Budget figures and the 2012-14 figures are the Draft Budget figures resulting from Spending Review 2011
And, for SG figures—
2011-12 to 2013-14 – SR2011, 2010-11- Draft Budget 2011-12, 2007-08 to 2009-10 – SR07, 2002-03 to 2006-07 – Draft Budget 2007-08, 2000-01 to 2001-02 – Draft Budget 2002-03, 1999-00 – Serving Scotland’s Needs.
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Figure 2 illustrates the total Local Government Funding as a percentage of SG DEL + NDRI figures over devolution.
Figure 2: Local Government Funding as a percentage of SG DEL + NDRI
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5%
10%
15%
20%
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30%
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RING-FENCING
Table 4 shows the level of ring-fenced funds included in the Local Government settlement. The information is only available from 2007-08 as before that there were ring-fenced grants across the whole Scottish Executive, and the Government does not hold records of the totality of these grants. Table 4: Local Government budget – ring fenced funds
Financial Year
Revenue (£m) Capital (£m) Total (£m)
2007-08
2,700.0
2008-09
2,072.3 278.3 2,350.6
2009-10
906.4 273.4 1,179.7
2010-11
932.6 155.4 1,088.0
2011-12
895.0 130.2 1,025.2
2012-13
904.1 132.4 1,036.5
2013-14
98.9 102.3 201.2
Source: Scottish Government (2013b)
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COUNCIL TAX INCOME AND NON-DOMESTIC RATES INCOME
This section of the briefing contains information on the level of income from council tax and non-domestic rates since 1999. Figure 3 below shows the change in income from both sources over time. Table 5 contains the data on council tax and table 5 contains the data on non-domestic rates.
Figure 3: Council tax and Non-Domestic Rates Income
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Table 5: Council tax income and Non-Domestic Rates Income
Year Council tax income (excluding CTB) (£m)
Council tax benefit subsidy (£m)
Council tax income (including CTB) (£m)
NDR Income (Contributable Amount) (£m)
1999-2000 1,194 276 1,469
1,497
2000-01 1,273 279 1,553
1,578
2001-02 1,363 285 1,649
1,671
2002-03 1,459 294 1,753
1,705
2003-04 1,532 308 1,840
1,706
2004-05 1,615 345 1,960
1,813
2005-06 1,720 354 2,074
1,933
2006-07 1,812 359 2,171
1,933
2007-08 1,890 354 2,244
1,928
2008-09 1,909 351 2,260
1,924
2009-10 1,910 368 2,278
2,010
2010-11 1,923 375 2,298
2,138
2011-12 1,926 376 2,302
2,252
2012-13
2,362
Source: Scottish Government (2013d)
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PFI/PPP/NPD REPAYMENTS
This final section of the Briefing provides information on the level of annual unitary charge repayments already made, and still to be made, on PFI/PPP and NPD projects. Information below is based on projects already signed. Given the Scottish Government’s plans for additional NPD projects, it is likely that the level of repayments will rise.
This information is drawn from the HM Treasury Signed Projects List (HM Treasury 2012), and the Scottish Government’s NPD Signed Projects List (Scottish Government 2012).
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Figure 4: PFI and NPD repayments
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SOURCES
HM Treasury. (2012) PFI current projects list March 2012. Available at: http://www.hm-treasury.gov.uk/ppp_pfi_stats.htm [Accessed 28 May 2013]
Scottish Government. (2012) NPD signed projects - unitary payment charges - March 2012. Available at: http://www.scotland.gov.uk/Topics/Government/Finance/18232/12308/NPDpaymentfigures [Accessed 28 May 2013]
Scottish Government. (2013a) Local Government Finance Circulars. Available at: http://www.scotland.gov.uk/Topics/Government/local-government/17999/11203 [Accessed 28 May 2013]
Scottish Government. (2013b) Personal Communication [unpublished]
Scottish Government. (2013c) Scottish Budget – Documents. Available at: http://www.scotland.gov.uk/Topics/Government/Finance/18127/Documents [Accessed 28 May 2013]
Scottish Government. (2013d) Scottish Local Government Finance Statistics. Available at: http://www.scotland.gov.uk/Topics/Statistics/Browse/Local-Government-Finance/PubScottishLGFStats [Accessed 28 May 2013]
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THIS PAGE IS INTENTIONALLY BLANK.
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RELATED BRIEFINGS
SB 12-74 Local Government Funding: Provisional Allocations for 2013-14 – 10 December 2012
SB 13-28 “Opening the can”: The Local Government Benchmarking Framework – 20 May 2013
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